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zhannawk [14.2K]
3 years ago
9

A machine purchased on 1/1/21 for $24,000 and on which $14,400 of Accumulated Depreciation has been recorded through 12/31/23 wa

s sold on 4/1/24. Straight-line depreciation was used. Salvage Value was zero. Asset life was 5 years. If the machine was sold for $16,000 cash, the journal entry to record this event would include a gain of:
Business
1 answer:
Amanda [17]3 years ago
6 0

Answer:

Gain on disposal = $7600

Explanation:

As the machine is sold on 1 April 2024, we first need to update the depreciation expense and charge the depreciation to the date. The depreciation has been charged till 1 December 2023. So, we need to charge the depreciation for three more months.

The formula for depreciation expense under straight line method is,

Depreciation expense per year = (Cost - Salvage value) / Estimated useful life

Depreciation expense per year = (24000 - 0) / 5

Depreciation expense per year =  $4800 per year

Depreciation expense for three months = 4800 * 3/12 = $1200

Accumulated depreciation 1 April 2024 = 14400 + 1200  =  $15600

To calculate the gain or loss on disposal, we first need to determine the net book value of asset and deduct it from the cash received on disposal.

NBV = Cost - Accumulated depreciation

NBV = 24000 - 15600

NBV = $8400

Gain on disposal = 16000 - 8400

Gain on disposal = $7600

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Answer:

All the above are correct

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Tom transfers a building that originally cost $40,000 to Paul Corp. in exchange for 100% of the corporation's stock. the adjuste
Korolek [52]

Answer:

Gain recognized by Tom is $10000

So option (b) will be correct answer

Explanation :

We have given liability on bulding assumed by Paul Corp = $30,000

Tom's adjusted basis in the building = $20,000

Since the liability assumed by Paul Corp on the building is greater than Tom's adjusted basis, Tom must recognize gain equal to the difference between the liability on the building and his adjusted basis.

So gain recognized by Tom = $30,000 - $20,000 = $10,000

4 0
3 years ago
When Heavenly Cookies prices its sugar cookies at $1.00, they sell 75 cookies. They lowered the price to $0.50 and sold 200 cook
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Answer: Total Revenue is $100 and the price elasticity is 0.4

Explanation: total revenue is computed as Price * Quantity

$0.5 * 200= $100

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Old price $1

New price $0.5

Old quantity 75

New quantity 200

Formula- % change in quantity demanded / % change in pride

NB change is (old-new)

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Change in price=(1-0.5)/1=0.5

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4 0
3 years ago
Target donates millions of dollars each year in education-related grants for arts and cultural experiences, field trips, and rea
melomori [17]

Answer:

<u><em>Philanthropy</em></u>

Explanation:

Target donates millions of dollars each year in education - related grants for arts and cultural experiences , field trips , and reading programs , as well as grants to promote public safety . This is an example of<u> Philanthropy.</u>

Philanthropy means giving things like money or any kind of gift to people for are need of that.

Philanthropy is good , it helps in solving the social problem .

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<em>Philanthropy always focuses on eliminating social problem.</em>

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3 years ago
Construction ManagementA construction company is building a new neighborhood, and they are currently working on the design. Each
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Answer:

Answer is described below.

Explanation:

POINTS TO NOTE:

1. Each house will be built using one (only one) of three major building materials - wood, brick, concrete.

2. The linear (in a line or side-by-side) arrangement of the houses will be such that no house will have the same material as the one beside it.

3. The cost of materials for each house will vary.

ANSWER: The minimum cost needed to complete the neighborhood depends on two things;

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Knowing these, the minimum cost needed to complete the neighborhood can be found. If it's going to be 6 houses in the neighborhood for instance and a wood house costs $40, a brick house costs $50 and a concrete house costs $60; the minimum cost to set up the neighborhood will be:

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7 0
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